Iberdrola has placed €600 million of green hybrid bonds to refinance a hybrid instrument maturing at the end of April this year.
The company said demand exceeded €5,000 million with participation from almost 280 qualified international investors.
Iberdrola added that the main geographies involved were the United Kingdom, France, Germany, Spain, the Netherlands, Luxembourg and Italy.
The book reached close to €2,000 million, allowing the company to set a 3.95% coupon, which it said is highly competitive and below the theoretical reference given secondary market pricing.
Iberdrola stated that this represents the lowest premium in history for a Spanish issuer.
The company said this appetite reflects confidence in the group chaired by Ignacio Galán following what it described as good results for the 2025 financial year.
It added that it took advantage of a market window after its results presentation, with cost levels at annual lows and ahead of a possible increase in supply next week.
Eight banks – BNP, HSBC, Unicredit, BBVA, Santander, Natixis, SMBC and Commerzbank – participated in the placement.
Iberdrola said the bond is green under both ICMA’s Green Bond Principles and the European Green Bond Standard, with more than 62% participation from sustainable investors.
It stated that this is its first public market operation of the year and will refinance a similar hybrid whose repurchase will take place soon.
The company said this keeps its hybrid volume stable at €8,250 million, consistent with commitments made at its recent Capital Markets Day in London.
It added that hybrid bonds count as 50% capital under main rating agency methodologies, supporting the group’s credit ratings.
The last issuance of this type of debt by Iberdrola dated from November 2024 with a 4.247% coupon.